Nestle’s share price was upbeat after the company posted its results for the quarter ended March.
What Happened: The FMCG giant on Thursday reported a 27% jump in its net profit at ₹934.17 crore for the March quarter, compared to the ₹736.6 crore posted in the same quarter last year. The company’s revenue for the quarter came in at ₹5,267.5 crore, up around 9% from the year-ago period. Both the bottom and topline were above street estimates.
Total sales and Domestic sales for the quarter increased by 9.3% and 8.9%, respectively. Export sales for the quarter increased by 19.0%. EBITDA for the quarter stood at ₹1,337.7 crore, up 21.8% from the year-ago period. EBITDA margin was at 25.4%. The company also announced a dividend of ₹8.5/share.
See also: Tata Group Stock Falling After Q4, But Brokerages Raise Target Price
The company also shared its outlook on commodity prices going forward. Coffee and Cocoa are at all-time high prices and the rally is still ongoing. “Cereals and grains are going through a structural cost increase backed by MSP. Milk prices expected to rise on account of expected harsh summer,” the company said in a statement.
The FMCG major also announced a joint venture with pharma giant Dr. Reddy’s Laboratories for investing in Dr. Reddy’s Nutraceuticals Ltd. The Joint Venture will see Nestle India hold a 49% stake.
Price Action: Nestle’s share price was up 0.55% to trade at ₹2,513.80 in the mid-market hours of trading on Thursday.
Read next: Railway Stock Extends Gains To 4th Day After Bagging ₹239 Cr Order
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.